Part 3 - Managerial Accounting Instructions These are the questions: I’ll upload an Excel File and Word Document with previous information for reference. The company is: The Boeing Company The Boeing...

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Part 3 - Managerial Accounting Instructions
These are the questions:
I’ll upload an Excel File and Word Document with previous information for reference.
The company is: The Boeing Company

The Boeing Company
Week 1 Questions
1. The principal activity business of the company is commercial jetliners, defence, security, and space systems, and a product service provider. The company is the biggest manufacturing exporter. Some of the Boeing products and services are:
· Commercial Aircraft
· Military Aircraft
· Satellites
· Weapons
· Launch system
· Communication system
· Logistics and training
2. Chief Financial Officer (CFO): Brian West
Brian West is a Finance graduate from Siena College and a Business Administration graduate from Columbia Business School
Brian West is a long-time finance and business leader with experience across industries like aerospace, manufacturing, infrastructure, among some of the industries. With long-term strategic planning experience in complex global organizations, Brian West is the ideal candidate for the role of CFO.
The career of the west looks like this
· CFO of Refinitiv
· CFO and Executive Vice President of Operations for Oscar Health Insurance
· CFO & COO of Nielsen
· CFO of GE Aviation and CFO of GE Engine Services (in his 16 years stint at General Electric)
With his corporate experience,e Brian also is the founding board member of a nonprofit organization in Connecticut whose emission is to develop the next generation of female leaders.
3. The ethical issue which Boeing, as a company is facing, is engineering ethics which is on the backdrop of two crashes within two years, one of which was in 2018 and the other one in the year 2019, the jetliner which was into the crash was the same which is 737 MAX the company’s best selling jetliner.
The action of the company already led to big financial losses for the company and now that they have taken full consideration of the engineering fault, around $2.5 billion is something which the company has used to settle and this is only the settlement amount.
Week 2 Questions
1.
    (in million)
    2020
    2021
    Decrease (-)/Increase (+)
    Revenue
    $58158
    $62286
    $4128
    Gross Profit
    -$5685
    $3017
    $8702
    EBIT
    -$12767
    -$2902
    $9865
Yes, all the three total increase on a year-to-year basis, this is because 2020 was the worst year for the company and the company rebounded in 2021.
The trend of the company is positive and rising, this is because of the increasing sales and demand which the company is seeing
2.
    Region (in million)
    2020
    2021
    United States
    $36,979
    $39,076
    Europe
    $7,961
    $8,967
    Asia
    $5,931
    $5,845
    Middle East
    $5,308
    $4,653
    Canada
    $1,302
    $969
    Oceania
    $832
    $1,147
    Africa
    $114
    $239
    Latin America, the Cari
ean, and othe
    $229
    $1,376
    Total Revenue
    $58,656
    $62,272
There is not one region which is performing best, because there are a healthy number of regions which is growing for the company at about 10% which means they are performing well, the regions such are:
· United States
· Europe
· Oceania
· Africa
· Latin America, the Cari
ean, and others
3. The products which the company provide are:
    Products/Services (in million)
    2020
    2021
    Commercial Airplanes
    $16,162
    $19,493
    Defense, Space & Security
    $26,257
    $26,540
    Global Services
    $15,543
    $16,328
    Boeing Capital
    $261
    $272
    Unallocated items, eliminations, and othe
    -$65
    -$347
    Total Revenue
    $58,158
    $62,286
Yes, the mix of products complement each other as the company is into airlines and also provide space and communication which is an integral part of running airlines, along with this the global services is one area which looks after the aftermarket services
Week 3 Questions
1. Income Statement
    Particulars (in million)
    2020
    2021
    Sales of Products
    $47,142
    $51,386
    Sales of Services
    $11,016
    $10,900
    Total Revenues
    $58,158
    $62,286
    
    
    
    Cost of Products
    -$54,568
    -$49,954
    Cost of Services
    -$9,232
    -$9,283
    Boeing Capital Interest Expense
    -$43
    -$32
    Total Cost and Expenses
    -$63,843
    -$59,269
    Gross Profit
    -$5,685
    $3,017
    Income/(loss) from operating investments, net
    $9
    $210
    General and administrative expense
    -$4,817
    -$4,157
    Research and development expense, net
    -$2,476
    -$2,249
    Gain on dispositions, net
    $202
    $277
    Loss from operations
    -$12,767
    -$2,902
    Other income, net
    $447
    $551
    Interest and debt expense
    -$2,156
    -$2,682
    Loss before income taxes
    -$14,476
    -$5,033
    Income tax benefit
    $2,535
    $743
    Net Loss
    -$11,941
    -$4,290
    Less: Net Loss attributable to noncontrolling interest
    -$68
    -$88
    Net loss attributable to Boeing Shareholde
    -$11,873
    -$4,202
2.
    Particulars (in million)
    2020
    2021
    Costs (Fixed/Variable)
    Sales of Products
    $47,142
    $51,386
    
    Sales of Services
    $11,016
    $10,900
    
    Total Revenues
    $58,158
    $62,286
    
    
    
    
    
    Cost of Products
    -$54,568
    -$49,954
    Variable
    Cost of Services
    -$9,232
    -$9,283
    Variable
    Boeing Capital Interest Expense
    -$43
    -$32
    Variable
    Total Cost and Expenses
    -$63,843
    -$59,269
    
    Gross Profit
    -$5,685
    $3,017
    
    Income/(loss) from operating investments, net
    $9
    $210
    
    General and administrative expense
    -$4,817
    -$4,157
    Fixed
    Research and development expense, net
    -$2,476
    -$2,249
    Fixed
    Gain on dispositions, net
    $202
    $277
    Fixed
    Loss from operations
    -$12,767
    -$2,902
    
    Other income, net
    $447
    $551
    
    Interest and debt expense
    -$2,156
    -$2,682
    Fixed
    Loss before income taxes
    -$14,476
    -$5,033
    
    Income tax benefit
    $2,535
    $743
    Variable
    Net Loss
    -$11,941
    -$4,290
    
    Less: Net Loss attributable to noncontrolling interest
    -$68
    -$88
    
    Net loss attributable to Boeing Shareholde
    -$11,873
    -$4,202
    
Variable Cost Per Unit:
    (in million)
     XXXXXXXXXX,020
     XXXXXXXXXX,021
    Total Fixed Cost
    $4,556
    $5,386
    Total Variable Cost
    $61,308
    $58,526
    Total Deliveries
     XXXXXXXXXX
     XXXXXXXXXX
    Variable Cost (per unit)
    $390
    $172
3. Total Cost (2020) = Fixed Cost + (Variable Cost per unit * Total Deliveries)
= $4,566 million + ($390 million * 157)
= $65,864 million
Total Cost (2021) = Fixed Cost + (Variable Cost per unit * Total Deliveries)
= $5,386 million + ($172 million * 340)
= $63,912 million
Week 5 Questions
1. Largest cost/expense for the company is: Cost of Products/Services
The cost is based on the raw materials purchased to manufacture the airlines
Strategies to reduce this:
· Tie up with the lowest cost provide
· Look for credit if you can get it, as this will reduce the working capital which will increase the return on investment
Week 6 Questions
(In the excel sheet)
Week 9 Questions
(In the excel sheet)


Income Statement
    Income Statement
    Particulars (in million)    2020    2021    Costs (Fixed/Variable)
    Sales of Products    $47,142    $51,386
    Sales of Services    $11,016    $10,900
    Total Revenues    $58,158    $62,286
    Cost of Products    -$54,568    -$49,954    Variable
    Cost of Services    -$9,232    -$9,283    Variable
    Boeing Capital Interest Expense    -$43    -$32    Variable
    Total Cost and Expenses    -$63,843    -$59,269
    Gross Profit    -$5,685    $3,017
    Income/(loss) from operating investments, net    $9    $210
    General and administrative expense    -$4,817    -$4,157    Fixed
    Research and development expense, net    -$2,476    -$2,249    Fixed
    Gain on dispositions, net    $202    $277    Fixed
    Loss from operations    -$12,767    -$2,902
    Other income, net    $447    $551
    Interest and debt expense    -$2,156    -$2,682    Fixed
    Loss before income taxes    -$14,476    -$5,033
    Income tax benefit    $2,535    $743    Variable
    Net Loss    -$11,941    -$4,290
    Less: Net Loss att
utable to noncontrolling interest    -$68    -$88
    Net loss attributable to Boeing Shareholder    -$11,873    -$4,202
    Fixed/Variable
        2,020    2,021
    Total Fixed Cost    -$4,556    -$5,386
    Total Variable Cost    -$61,308    -$58,526
    Total Deliveries    157    340
    Variable Cost (per unit)    -$390    -$172
    Total Cost    -$65,864    -$63,912
Balance Sheet
    (in million)    2020    2021
    Assets
    Cash and cash equivalents    $7,752    $8,052
    Short-term and other invesmtnets    $17,838    $8,192
    Accounts receivable    $1,955    $2,641
    Unbilled receivables    $7,995    $8,620
    Cu
ent Portion of customer financing    $101    $117
    Inventories    $81,715    $78,823
    Other cu
ent Assets    $4,286    $2,221
    Total Cu
ent Assets    $121,642    $108,666
    Customer financing    $1,936    $1,695
    Property, plant and equipment     $11,820    $10,918
    Goodwill    $8,081    $8,068
    Acquired intangble assets    $2,843    $2,562
    Defe
ed income taxes    $86    $77
    Investments    $1,016    $975
    Other assets, net of accumulated amorization    $4,712    $5,591
    Total Assets    $152,136    $138,552
    Liabilities and equity
    Accoutns payable    $12,928    $9,261
    Accrued liabilities    $22,171    $18,455
    Advances and progress billings    $50,488    $52,980
    Short-term debt and cu
ent portfolio of long-term debt    $1,693    $1,296
    Total Cu
ent Liabilities    $87,280    $81,992
    Defe
ed income taxes    $1,010    $218
    Accrued retiree health care    $4,137    $3,528
    Accrued pension plan liability    $14,408    $9,104
    Other long-term liabilities    $1,486    $1,750
    Long-term debt    $61,890    $56,806
    Total Liabilities    $170,211    $153,398
    Shareholders equity
    Common Stock    $5,061    $5,061
    Additional paid-in capital    $7,787    $9,052
    Treasury Stock    -$52,641    -$51,861
    Retained Earnings    $38,610    $34,408
    Accumulated other comprehensive loss    -$17,133    -$11,659
    Total Shareholders deficit    -$18,316    -$14,999
    Noncontrolling interest    $241    $153
    Total Equity    -$18,075    -$14,846
    Total Liabilities and equity    $152,136    $138,552
Week 9 Calculation
    1)
    (in million)    2021    April     May     June    July     (All of this are forecasts)
    Revenue    $62,286.00    $5,450.03    $5,341.02    $5,928.54    $4,742.83
    2)
    Cost of Goods Sold Percentage    0.95
    Monthly Fixed Expense    $448.83
    Monthly Variable Expense    $61.92
    Monthly Depreciation    $8.17
    Income Tax Rate    0.15
    Interest Rate    0.05
    3)
    (in million)    April (Forecast)    May (Forecast)    June (Forecast)    July (Forecast)
    Sales    $5,450.03    $5,341.02    $5,928.54    $4,742.83
    Cash Sales    $2,180.01    $2,136.41    $2,371.41    $1,897.13
    Credit Sales    $3,270.02    $3,204.61    $3,557.12    $2,845.70
    Collections of Sales
    Cash    $2,180.01    $2,136.41    $2,371.41    $1,897.13
    Credit Sales for April        $981.00    $1,308.01    $817.50
    Credit Sales for May            $961.38    $1,281.85
    Credit Sales for June                $1,067.14
    Accounts Receivable    $3,270.02    $5,493.63    $6,781.36    $6,460.57
    Uncollectible    $163.50    $323.73    $501.59    $643.87
    Accounts Receivable, net of uncollectible    $3,106.51    $5,169.89    $6,279.77    $5,816.70
    Inventory Bought    $5,590.55    $6,205.51    $4,964.41    $0.00
    Accounts Payable    $570.46    $559.05    $620.55    $496.44
    4)
    Fixed Asset Investment    $1,000.00    $0.00    $0.00    $0.00
    5)
    Cash Budget
    Particulars    April (Forecast)    May (Forecast)    June (Forecast)    July (Forecast)
    Cash Sales    $2,180.01    $2,136.41    $2,371.41    $1,897.13
    Add: Credit Sales Collection    $0.00    $981.00    $2,269.39    $3,166.49
    Add: Interest Received on Cash Balance    $2.01    $2.01    $2.01    $2.01
    Less: Payment for Inventory    $4,667.43    $6,155.42    $5,027.02    $620.55
    Less: Fixed Asset Investment    $1,000.00    $0.00    $0.00    $0.00
    Add: Debt Raised    $0.00    $3,036.00    $384.20    $0.00
    Less: Debt Paid    $4,163.99    $0.00    $0.00    $4,445.08
    Net Cash Flow    -$7,649.40    $0.01    -$0.00    $0.00
    Add: Beginning Cash Balance    $8,052.00    $402.60    $402.60    $402.60
    Net Cash at the end of the month    $402.60    $402.60    $402.60    $402.60
    Minimum Cash Balance (Required)    $402.60    $402.60    $402.60    $402.60
Answered Same DayApr 23, 2022

Answer To : Part 3 - Managerial Accounting Instructions These are the questions: I’ll upload an Excel File and...

Khushboo answered on Apr 24 2022
17 Votes
Income Statement
    Income Statement
    Particulars (in million)    2020    2021    Costs (Fixed/Variable)
    Sales of Products    $47,142    $51,386
    Sales of Services    $11,016    $10,900
    Total Revenues    $58,158    $62,286
    Cost of Products    -$54,568    -$49,954    Variable
    Cost of Services    -$9,232    -$9,283    Variable
    Boeing Capital Interest Expense    -$43    -$32    Variable
    Total Cost and Expenses    -$63,843    -$59,269
    Gross Profit    -$5,685    $3,017
    Income/(loss) from operating investments, net    $9    $210
    General a
nd administrative expense    -$4,817    -$4,157    Fixed
    Research and development expense, net    -$2,476    -$2,249    Fixed
    Gain on dispositions, net    $202    $277    Fixed
    Loss from operations    -$12,767    -$2,902
    Other income, net    $447    $551
    Interest and debt expense    -$2,156    -$2,682    Fixed
    Loss before income taxes    -$14,476    -$5,033
    Income tax benefit    $2,535    $743    Variable
    Net Loss    -$11,941    -$4,290
    Less: Net Loss att
utable to noncontrolling interest    -$68    -$88
    Net loss attributable to Boeing Shareholder    -$11,873    -$4,202
    Fixed/Variable
        2,020    2,021
    Total Fixed Cost    -$4,556    -$5,386
    Total Variable Cost    -$61,308    -$58,526
    Total Deliveries    157    340
    Variable Cost (per unit)    -$390    -$172
    Total Cost    -$65,864    -$63,912
Balance Sheet
    (in million)    2020    2021
    Assets
    Cash and cash equivalents    $7,752    $8,052
    Short-term and other invesmtnets    $17,838    $8,192
    Accounts receivable    $1,955    $2,641
    Unbilled receivables    $7,995    $8,620
    Cu
ent Portion of customer financing    $101    $117
    Inventories    $81,715    $78,823
    Other cu
ent Assets    $4,286    $2,221
    Total Cu
ent Assets    $121,642    $108,666
    Customer financing    $1,936    $1,695
    Property, plant and equipment     $11,820    $10,918
    Goodwill    $8,081    $8,068
    Acquired intangble assets    $2,843    $2,562
    Defe
ed income taxes    $86    $77
    Investments    $1,016    $975
    Other assets, net of accumulated amorization    $4,712    $5,591
    Total Assets    $152,136    $138,552
    Liabilities and equity
    Accoutns payable    $12,928    $9,261
    Accrued liabilities    $22,171    $18,455
    Advances and progress billings    $50,488    $52,980
    Short-term debt and cu
ent portfolio of long-term debt    $1,693    $1,296
    Total Cu
ent Liabilities    $87,280    $81,992
    Defe
ed income taxes    $1,010    $218
    Accrued retiree health care    $4,137    $3,528
    Accrued pension plan liability    $14,408    $9,104
    Other long-term liabilities    $1,486    $1,750
    Long-term debt    $61,890    $56,806
    Total Liabilities    $170,211    $153,398
    Shareholders equity
    Common Stock    $5,061    $5,061
    Additional paid-in capital    $7,787    $9,052
    Treasury Stock    -$52,641    -$51,861
    Retained Earnings    $38,610    $34,408
    Accumulated other comprehensive loss    -$17,133    -$11,659
    Total Shareholders deficit    -$18,316    -$14,999
    Noncontrolling interest    $241    $153
    Total Equity    -$18,075    -$14,846
    Total Liabilities and equity    $152,136    $138,552
Week 9 Calculation
    1)
    (in million)    2021    April     May     June    July     (All of this are forecasts)
    Revenue    $62,286.00    $5,450.03    $5,341.02    $5,928.54    $4,742.83
    2)
    Cost of Goods Sold Percentage    0.95
    Monthly Fixed Expense    $448.83
    Monthly Variable Expense    $61.92
    Monthly Depreciation    $8.17
    Income Tax Rate    0.15
    Interest Rate    0.05
    3)
    (in million)    April (Forecast)    May (Forecast)    June (Forecast)    July (Forecast)
    Sales    $5,450.03    $5,341.02    $5,928.54    $4,742.83
    Cash Sales    $2,180.01    $2,136.41    $2,371.41    $1,897.13
    Credit Sales    $3,270.02    $3,204.61    $3,557.12    $2,845.70
    Collections of Sales
    Cash    $2,180.01    $2,136.41    $2,371.41    $1,897.13
    Credit Sales for April        $981.00    $1,308.01    $817.50
    Credit Sales for May            $961.38    $1,281.85
    Credit Sales for June                $1,067.14
    Accounts Receivable    $3,270.02    $5,493.63    $6,781.36    $6,460.57
    Uncollectible    $163.50    $323.73    $501.59    $643.87
    Accounts Receivable, net of uncollectible    $3,106.51    $5,169.89    $6,279.77    $5,816.70
    Inventory Bought    $5,590.55    $6,205.51    $4,964.41    $0.00
    Accounts Payable    $570.46    $559.05    $620.55    $496.44
    4)
    Fixed Asset Investment    $1,000.00    $0.00    $0.00    $0.00
    5)
    Cash Budget
    Particulars    April (Forecast)    May (Forecast)    June (Forecast)    July (Forecast)
    Cash Sales    $2,180.01    $2,136.41    $2,371.41    $1,897.13
    Add: Credit Sales Collection    $0.00    $981.00    $2,269.39    $3,166.49
    Add: Interest Received on Cash Balance    $2.01    $2.01    $2.01    $2.01
    Less: Payment for Inventory    $4,667.43    $6,155.42    $5,027.02    $620.55
    Less: Fixed Asset Investment    $1,000.00    $0.00    $0.00    $0.00
    Add: Debt Raised    $0.00    $3,036.00    $384.20    $0.00
    Less: Debt Paid    $4,163.99    $0.00    $0.00    $4,445.08
    Net Cash Flow    -$7,649.40    $0.01    -$0.00    $0.00
    Add: Beginning Cash Balance    $8,052.00    $402.60    $402.60    $402.60
    Net Cash at the end of the month    $402.60    $402.60    $402.60    $402.60
    Minimum Cash Balance (Required)    $402.60    $402.60    $402.60    $402.60
Week 11 caluclations
        Budgeted Income Statement                    Budgeted Balance Sheet
                            Particulars (in million)        April     May     June
        Particulars (in million)    April     May     June        Cash and cash...
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